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Oo ezto.mheducation.com/hm.tpx Budgeted unit sales 11,800 12,800 14,800 13,800 T

ID: 2559008 • Letter: O

Question

Oo ezto.mheducation.com/hm.tpx Budgeted unit sales 11,800 12,800 14,800 13,800 The selling pnce of the company's product is S17 per unit Management expects to collect 65% of sales n the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $71,800 The company expects to start the first quarter with 1,770 units in finished goods inventory Management des esan endingfin shed goods inventory in each quarter equal to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,970 units Required: 1-a. Complete the company's sales budget Jessi Corporation Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted units sales 11,800 12,800 14,800 13,800 Selling price per unit S Total sales 53.200 17 200,600 $ 217,600 $ 251,600 $ 234,600 S 904,400 1? $ 17 S 17 $ 17 S Jessi Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning accounts receivable 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections $ 71,800 s 71,800 130,390 130,390 0 $ 202,190 S o202,190

Explanation / Answer

1a.

Jessi Corporation

Sales Budget

1b.

Jessi Corporation

Schedule of Expected Cash Collections

2.

Jessi Corporation

Production Budget

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales (a) 11,800 12,800 14,800 13,800 53,200 Sellimg price per unit (b) 17 17 17 17 17 Total sales (c) = (a*b) 200,600 217,600 251,600 134,600 904,400